Sara Mauskopf
Sara Mauskopf is the co-founder and CEO of Winnie. She’s also the mom of three young children and vocal advocate for high quality child care and early education for all.
According to a recent Senate report, $37.5 billion in federal funding for child care will expire this September 2023. This pandemic-era funding has been essential to keeping child care affordable and accessible for millions of families. Without this funding, many child care providers will be forced to close or raise their prices, making it even harder for families to find and afford child care.
Below is a table of the funding child care providers received during the pandemic and when it will hit its cliff. The first 3 sources make up the $37.5 billion running out this September.
|
Funding Source |
Program Funded |
Amount |
Deadline for States to liquidate |
|
Coronavirus Aid, Relief, and Economic Security (CARES) Act |
Child Care and Development Block Grant (CCDBG) |
$3.5 billion
|
September 30, 2023 |
|
Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) |
Child Care and Development Block Grant (CCDBG) |
$10 billion |
September 30, 2023 |
|
American Rescue Plan Act |
Child Care Stabilization Grants |
$24 billion |
September 30, 2023 |
|
American Rescue Plan Act |
Child Care and Development Block Grant (CCDBG) |
$15 billion |
September 30, 2024 |
Below is data on how much funding each state received.
| State | Funding Cliff Amount |
|---|---|
| Alabama | $940,901,111.00 |
| Alaska | $94,999,231.00 |
| Arizona | $1,239,718,615.00 |
| Arkansas | $595,335,837.00 |
| California | $4,811,910,982.00 |
| Colorado | $597,366,388.00 |
| Connecticut | $358,001,374.00 |
| Delaware | $139,258,052.00 |
| District of Columbia | $83,317,353.00 |
| Florida | $3,180,521,492.00 |
| Georgia | $2,011,482,964.00 |
| Hawaii | $166,375,279.00 |
| Idaho | $288,392,617.00 |
| Illinois | $1,656,767,201.00 |
| Indiana | $1,126,528,028.00 |
| Iowa | $476,864,836.00 |
| Kansas | $445,954,218.00 |
| Kentucky | $979,988,102.00 |
| Louisiana | $992,910,365.00 |
| Maine | $152,311,335.00 |
| Maryland | $646,040,458.00 |
| Massachusetts | $658,266,065.00 |
| Michigan | $1,466,295,682.00 |
| Minnesota | $677,337,432.00 |
| Mississippi | $662,288,159.00 |
| Missouri | $923,620,272.00 |
| Montana | $141,776,263.00 |
| Nebraska | $300,190,969.00 |
| Nevada | $464,214,885.00 |
| New Hampshire | $99,992,066.00 |
| New Jersey | $893,496,201.00 |
| New Mexico | $407,905,272.00 |
| New York | $2,356,762,460.00 |
| North Carolina | $1,678,522,663.00 |
| North Dakota | $98,540,187.00 |
| Ohio | $1,667,217,096.00 |
| Oklahoma | $758,701,009.00 |
| Oregon | $515,671,999.00 |
| Pennsylvania | $1,523,230,421.00 |
| Rhode Island | $119,667,179.00 |
| South Carolina | $909,979,204.00 |
| South Dakota | $129,289,979.00 |
| Tennessee | $1,154,772,978.00 |
| Texas | $5,705,580,339.00 |
| Utah | $542,667,603.00 |
| Vermont | $60,997,222.00 |
| Virginia | $1,025,626,373.00 |
| Washington | $813,841,922.00 |
| West Virginia | $334,074,429.00 |
The child care funding cliff is a serious threat to the early education and childcare system. When families are unable to find or afford child care, they are less likely to be able to work. This could lead to lower labor force participation, not to mention more children missing out on all the benefits of early education.
There are a number of things that can be done to prevent the child care funding cliff. Congress can pass legislation to extend the funding. States can also invest in child care by increasing subsidies and expanding access to quality programs. Employers can step up and help fill the gap by providing child care subsidies for their employees.
For parents, it’s important to plan ahead as much as possible. If you can secure your spot now and even lock in a tuition rate for next year, you might find yourself in a good position when providers raise their prices. You can also have a conversation with your child care provider to understand how reliant they were on this funding and see if their business is at risk.
For child care providers, it will become more important than ever to run as profitably as possible. Work on your business plan, stay fully enrolled by marketing your programs to local families (Winnie can help with that too), consider providing additional services that are in high demand like drop-in care, and see if any grants are available.
Everyone can help by spreading awareness of the child care cliff. September 30 will be here in just a few months and we need to act now.
